Hey folks,
With all the doom and gloom in today’s media, I wanted to take a moment to address the changes we’re seeing in the current real estate market. I honestly believe things aren’t as bad as some people are making it seem. Here are some examples of the positive outlook of the housing market:
Housing Affordability at All-Time Best (Barron’s)
Housing affordability (measured as the percentage of income needed to afford the monthly cost of a median-priced home) reached an all-time best in the first quarter of 2009! Areas with the highest levels of foreclosures showed the largest year-over-year increase in sales in the last quarter – 46% in Arizona, 80% in California, 25% in Florida, and 111% in Nevada.
Homes: Most Affordable in 2 Decades (CNNMoney)
The NAHB is also addressing the increasing affordability of housing. According to the Housing Opportunity Index, 72.5% of all houses sold in the first three months of 2009 were affordable to families earning the national median income of $64,000 (up from 62.4% during the previous quarter). Affordability scores are going up all over the nation.
U.S. MBA Mortgage Applications Index Rose 2.3 Percent Last Week (Bloomberg)
Lower interest rates are contributing to the rise in mortgage applications in the US. Rates for new mortgage rates and refinancing are still very near the all-time record low we saw back in March; this incentive, in addition to more affordable housing, is going to help the slumping real estate market because people are seeing how attractive it is to purchase a home right now.
Signs Of Housing Bottom Building (Investopedia)
Home building companies across the nation are seeing vast improvements in their stock prices (D.R. Horton is up 150% from their 52 week low). Several real estate based Exchange-Traded Funds have appreciated between 25-30% since March. According to this article, “Alan Greenspan, former Federal Reserve chief, recently suggested that the U.S. is ‘at the edge of a major liquidation; in the stock of unsold properties. If that’s so, we should expect a recovery to be close at hand.”
The Housing Market Hits the Bottom (Huliq)
Almost half of Realtors surveyed by HomeGain.com expect home prices to stop falling and start rising in the next six months. Since the number of foreclosures entering the market have slowed, new home construction is down, and more buyers are now able to buy homes, the inventory of homes on the market is quickly dropping and therefore encouraging buying.
If you are serious about buying investment property, I highly encourage you to do it NOW. You must buy while prices are still low and fear is rampant. Once things start looking too rosy, bargains will be tougher to find. Don’t say I didn’t warn you!
Until next time, happy (and profitable) investing!
Doug Smith
Real Estate Investor
Founder of MyHouseDeals.com
Thanks for the information. I do believe that it is the right time to do what ever it is you need to do to make money now!!!
have a blessed Day
Angela
Hard money lenders!! I need a reliable source
Is it possible to use your services if I don’t live in L. A.?
How will I be able to inspect the homes?
When will you cover the northern part of California?
How do I get started with no cash??? Iwant to get started but not sure how
Hey Doug,
i totally agree about buying a house right now. My credit is low . like 525 . I know that there are some gov’t loans that I may qualify for , i just don’t know how to get started with the whole process. I’m totally willing to try. If there is some great freind of yours that i can trust i would love to get some help.
Thanks for all you do doug………………….. t. cooper and kids.
Thank You Doug I agree the market is open for change in a new direction of positive projection I seek private investor groups who will purchase my deals when I find them
if you know of any private money lenders / GROUPS who will like to send me their target areas of investing and the spread they will pay cents on the dollar for multi family deals and residential deals I am sure we can all make some money I am exploring all phases of the Atlanta markets and other nationwide markets seeking investors nationwide to success Freddie Knight of Real Estate Round
Doug I Leo Charley is very eager to purchase this property at 87 Street between Glenwood and Faragut but unfortunately Doug I dont have the money it is a investors deal THE LAND IS SELLING FOR $150,000 the house a 3br/3br with finished basement 2br land space is actually 3/4 acres or more you could build another three family beside it please Doug please help me to purchase this property I have no money the value is approx, $860,000 now but the owner wants $600,000 for both the house and the land my credit is mess up because of health problems thanks you very much for your kind reply yours truly Leo Charley 718 -241-6747 or vzeo7ip1@yahoo.com
I just want to know if you would buy this property or if you could help me purchase this property if so I will give you all the info you need thank you very kindly vzeo7ip1@yahoo.com or 718-241-6747
Dear Doug, The reason we cannot stay in homes on the property is the taxes makes it uncomfortable to live in homes in America for most of us. Your friend always, Kari (pronounced car ee)
I have been an investor for the last 14 years. Does anyone know who is lending (private lenders) in the state of Maryland for acquisition and renovation deals? Short term, less than 12 months? Anyone?
I just spent the day with a government representative to learn all the
downpayment assistance programs, almost everything is intended for owner occupied. There are programs out there to help you. That being said you need to really work on your credit.
I am interested in the response I have a similar problem.
Hello Doug,
It hs bn a while since I’v bn wondering if it could b possible to purchase but, skepticism is stopping along w/no asset value.
Thr’s s hse not too far from me in Avon, MA that I like, could u help me buy it please w/some of yor resources please?
Cordially;
MC Pierre
To everyone who’s asking about hard money lenders, be sure to check out Rocky’s Rolodex of Hard Money Lenders. You can find it once you’re logged into the members’ area of the website under the ‘Gifts & Bonuses’ tab.
Private lenders are also a really great way to get started without much of your own money. I hope you were able to see the Private Funding webinar I put together with Alan Cowgill last month, it was full of great information. If you missed that one, please keep an eye out for invitations to our next webinars; they’re an invaluable source for investing education!
– Doug Smith